This article is for family groups, high-net-worth individuals, and private client services clients who are navigating the evolving space of crypto asset investments in Australia. With the ATO’s recent draft guidance and compliance focus, understanding your obligations and risks around crypto assets is more important than ever.
The ATO crypto asset guidance draft provides important clarification for family groups, high-net-worth individuals and private clients investing in digital assets. With crypto assets identified as a key compliance focus for 2025-26, understanding your tax obligations is becoming increasingly important.
What the ATO Crypto Asset Guidance Means for Private Clients
The ATO’s draft guidance on crypto assets provides practical direction for individuals and families investing in or transacting with cryptocurrencies and related digital assets. Here’s what you need to know:
Tax Treatment of Crypto Assets
Most crypto asset transactions – including buying, selling, swapping, gifting, or using crypto to purchase goods and services – trigger a capital gains tax (CGT) event. You may make a capital gain or loss, and these must be reported in your tax return. The ATO’s data-matching program means that unreported crypto transactions are more likely to be detected.
Valuation and Record-Keeping
All crypto assets must be valued in Australian dollars at the time of each transaction. The ATO expects robust records, including dates, amounts, wallet addresses, and the purpose of each transaction. Poor record-keeping is a common compliance risk and can lead to penalties.
Common Traps for Family Groups and HNWIs
- Using business or trust funds to invest in crypto without proper documentation can attract ATO scrutiny.
- Transferring crypto assets between family members or entities may have unexpected tax consequences.
- Staking, airdrops, and DeFi activities may have income tax implications, not just CGT.
- Lost or stolen crypto assets require evidence for any tax deduction or CGT relief claim.
ATO’s Compliance Focus for 2025–26
The ATO is prioritising:
- Correct reporting of crypto gains and losses.
- Proper documentation of transactions, especially where assets are held across multiple wallets or exchanges.
- Ensuring trust and family group structures are not used to obscure beneficial ownership or avoid tax.
What This Means for You
For family groups and high-net-worth individuals, the ATO’s draft guidance signals a shift towards greater transparency and accountability in crypto asset reporting. Clients should expect increased scrutiny of their crypto transactions, especially where assets are held across multiple wallets or entities.
Proactive compliance and robust record-keeping will not only help avoid penalties but also support wealth preservation and succession planning. Drawing on expert guidance ensures you pay the right amount of tax at the right time, while maintaining privacy and discretion in your affairs.
Next Steps
To stay ahead of the ATO’s compliance focus, family groups and private clients should:
- Review all crypto asset transactions for the past year and ensure they are correctly reported.
- Strengthen record-keeping practices, including documenting the source and use of funds for each transaction.
- Seek specialist advice before transferring crypto assets between entities or family members.
- Stay informed about ATO updates and best practices by subscribing to relevant insights.
For tailored advice and support, contact Andersen’s Private Client Services team. We can help you navigate the complexities of crypto asset compliance and reduce your risk of ATO review.
©Andersen Australia Pty Ltd. All Rights Reserved. Andersen is the Australian member firm of Andersen Global, an association of legally separate, independent member firms located throughout the world providing services under their own name or the brand “Andersen,” “Andersen Tax,” “Andersen Tax & Legal,” or “Andersen Legal.” Andersen Global does not provide any services and has no responsibility for any actions of the member firms, and the member firms have no responsibility for any actions of Andersen Global. No warranty or representation, express or implied, is made by Andersen, nor does Andersen accept any liability with respect to the information and data.
